Phoenix's Aurora Trust proposes merger with Artemis Alpha

Phoenix’s Aurora Investment Trust has proposed a merger with the Artemis Alpha Trust, it was reported on Monday, aiming to consolidate £353m in assets.

The £123.7m Artemis trust and the £198.6m Aurora trust, both around 25 years old, would form the new Aurora Alpha Trust if the deal proceeded, according to City AM.

Under the proposed terms, Aurora’s board and its investment management structure, managed by Phoenix, would remain unchanged.

The lead manager of Artemis Alpha would join Phoenix’s investment team later this year, and Artemis shareholders would receive new shares in the merged entity.

City AM reported that Artemis Alpha had experienced a -9.6% return over the past three years and traded at a 13.5% discount to its net asset value, while Aurora Trust had returned over 20% in the same period, with a discount of 7.8%.

Phoenix had committed £0.75m to cover merger-related expenses, which was expected to reduce transaction costs for Aurora shareholders.

The merger was expected to lower ongoing charges due to the larger asset base.

Currently, 31.5% of shareholders from both trusts supported the merger.

Aurora chair Lucy Walker expressed enthusiasm about the potential benefits of the merger, including lower fees and improved liquidity for shareholders.

Reporting by Josh White for Sharecast.com.